Earn­ings dented by gov­ern­ment deal

The Star Late Edition - - COMPANIES - – Roy Cokayne

THE RECOG­NI­TION of the full value of WBHO’s so­cio-eco­nomic con­tri­bu­tion and fi­nan­cial li­a­bil­ity aris­ing from the set­tle­ment agree­ment with the gov­ern­ment sig­nif­i­cantly hurt the listed con­struc­tion and engi­neer­ing group’s earn­ings in the six months to De­cem­ber. The group yes­ter­day said its head­line earn­ings a share for this pe­riod was ex­pected to be be­tween 37.5 per­cent and 42.5 per­cent lower than than 632.1 cents in the pre­vi­ous cor­re­spond­ing pe­riod. This equates to head­line earn­ings a share of be­tween 363c and 395c for the six months to De­cem­ber. In terms of the gov­ern­ment set­tle­ment, seven listed con­struc­tion com­pa­nies agreed to col­lec­tively con­trib­ute R1.5 bil­lion over 12 years to a fund to be es­tab­lished for so­cio-eco­nomic devel­op­ment and un­der­take fur­ther trans­for­ma­tion ini­tia­tives in terms of a set­tle­ment agree­ment reached with the gov­ern­ment. WBHO’s to­tal com­mit­ment in terms of this agree­ment was R255m over 12 years. The agree­ment with gov­ern­ment set­tled out­stand­ing and po­ten­tial civil dam­ages claims by state en­ti­ties against the seven com­pa­nies. The group added yes­ter­day that it had achieved sat­is­fac­tory trad­ing over the pe­riod with the ex­cep­tion of a sin­gle loss-mak­ing project in Aus­tralia. WBHO did not iden­tify this project. The group added that its ad­justed head­line earn­ings a share for the six month to De­cem­ber were ex­pected to be be­tween 5 per­cent and 10 per­cent higher than the 632.1c in the prior pe­riod. This equates to ad­justed head­line earn­ings a share of be­tween 664c and 695c for this pe­riod. WBHO ex­pects to re­lease its in­terim fi­nan­cial re­sults on Fe­bru­ary 28.

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